What are the strategies used to reduce risk?

Answer 1

The amount of risk a company or an individual is willing to accept varies based on the risk management strategy accepted by that company or individual. Risk management strategies range from avoiding all risk whenever possible, to accepting most risks and doing everything possible to eliminate those risks. When accepting risk, the company or individual must make sure it is a potentially profitable decision. Once the level of risk that is acceptable is determined, a strategy matching that level can be chosen

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Answer 2

In most situations risk exposure can be reduced through one of the following techniques:

* Transfer the risk to an insurance company. It is advantageous, however insurability does not necessarily mean that a risk should be covered by insurance. It is better for a company to self-insure, which means bearing the risk directly rather than paying another party to bear it.

* Transfer the function that produces risk to a third party.

* Purchase derivative contracts to reduce risk. Financial derivatives be used to reduce risks that arise from changes in interest rates and exchange rates.

* Reduce the probability of occurrence of an adverse event. The expected loss arising from any risk is a function of both the probability of occurrence and the dollar loss if the adverse occurs. In some instances , it is possible to reduce the probability that an adverse event will occur.

* Reduce the magnitude of the loss associated with an adverse event. For example the dollar cost associated with a fire can be reduced by such actions as installing sprinkler systems, designing facilities with self contained fire zones and locating facilities close to afire station.

* Totally avoid the activity that gives rise to the risk. For example a company might discontinue a product or service line because the risks outweigh the rewards.

Answer 3

Some strategies to reduce risk include diversifying investments, setting stop-loss orders, conducting thorough research before making financial decisions, and using risk management tools such as insurance. It is also important to regularly review and adjust your risk management strategies as needed.

Answer 4

Risk can be associated to your lifestyle, if you live a "High Risk" lifestyle then reducing your lifestyles risk shall reduce the risk of getting a risk!

Answer 5

If we're talking about cryp to; strategy and risk management is the way to avoid losses. Try Netcoins Exchange if you want to trade for cryp to, especially if you're from Canada.